We reveal the censored names in yesterday's HKICPA announcement, and look at the awful losses experienced by investors in the HK-listed audit clients of Parker Randall CF (H.K.) CPA Ltd.

Parker Randall's HK track record27 October 2012

The HKICPA announced
yesterday
that on 8-Oct-2012 (yes, it took them 18 days to announce it), a Disciplinary
Committee of HKICPA ordered that the practising certificate of
Peter Lau Po Ming (Mr Lau)
be cancelled on 17-Nov-2012 and he be banned from practising in 2013 and 2014.

The announcement and the
Reasons for
Decision (Reasons) have been unnecessarily self-censored by
HKICPA. We call on the HKICPA to be more transparent - isn't that what
accountants are for? Webb-site will fill in the blanks. The "Corporate Practice
P" referred to is
Parker Randall CF (H.K.) CPA Ltd (Parker Randall).
According to the Reasons, Mr Lau was its sole practising director until he
"ceased" to be a director on 10-May-2010.

We won't repeat the details of the Complaint (which Mr Lau admitted) here -
you can find that in the Reasons, and now that you know the companies, you can
read the accounts in parallel with the Reasons and it will make more sense.

As we noted, Mr Lau left Parker Randall, or at least ceased to be its sole
practising director, on 10-May-2010. The (or a) current director is
Parker Seto Man Fai (Mr
Seto). He is an INED of 2 HK-listed companies, including New City, to
which he was appointed on 21-Oct-2009. Parker Randall resigned from New City on
14-Apr-2010, presumably before Mr Seto took over at Parker Randall. We assume
there is no connection between his chosen English name (Parker), which he
uses as a director in the USA, and the Parker Randall brand. It is unclear
whether Parker Randall is still a member firm of
Parker Randall
International Ltd.

Now thanks to a wonderful new feature of Webb-site, you can look at the past
and present list of
HK-listed audit clients of Parker Randall. You can see that they have had 8
listed audit clients, of which 7 remain, and the average annualised Webb-site
Total Return on the shares of those companies during the period of service is
negative, -32.04% p.a. (excluding one which has been suspended since the
appointment). In fact all of them are negative - you could not have failed to
lose money if you had bought shares in any of them when Parker Randall was
appointed and held them for the duration. We are not of course implying any
cause and effect, merely a correlation. Total returns are updated daily, so these numbers will change.